FINAL EDITION Page: A01 Simon Proposes a Place to Shop, Live, Work, P
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Indianapolis Star June 28, 2005 Section: NEWS Edition: FINAL EDITION Page: A01 Simon proposes a place to shop, live, work, play MADHUSMITA BORA [email protected] When it comes to growing retail in the 21st century, it takes a village. That's the strategy behind mall owner Simon Property Group's latest plans in Noblesville. On Monday the company said it will build a massive project that goes beyond a mere mall or lifestyle center. It will be a place where people can live, play, work and shop. Simon has teamed up with Indianapolis-based real-estate developer Gershman Brown & Associates to create Hamilton Town Center, which will rank as one of Central Indiana's largest shopping areas. The $100 million-plus development will feature a hotel, office space, housing, Main Street shopping, restaurants and a movie theater within walking distance of one another. The project is a hybrid of residential, commercial and entertainment development and the so-called lifestyle concept that is cropping up around major U.S. cities as developers seek an alternative to department store-anchored malls. Simon officials say this village concept appeals to today's busy shoppers, who are nostalgic for a Main Street experience and appreciate the ease of storefront parking. The project in Noblesville's 3,600-acre Corporate Campus on the north side of I-69's Exit 10 interchange rides the industry trend of building open-air shopping areas rather than enclosed malls. The 97-acre project is similar in style to the 1,700-acre Anson Project in Boone County, in which Gershman Brown also is playing a role. Noblesville officials expect the project to create 2,700 jobs. They said the center ties well with the 280-acre Saxony Corporate Campus office and warehouse project beside it. Simon officials declined to say what stores might move into Hamilton Town Center. A preliminary plan released by the partners shows sites for a store selling sporting goods, groceries, home goods and books. Construction will begin next spring, and it will open to shoppers by fall 2007. Patrice Duker, spokeswoman for the International Council of Shopping Centers, does not expect the new development to threaten existing enclosed malls and shopping centers in the area, because they attract a different mix of stores and also serve a different clientele. Formats such as Hamilton Town Center open up alternatives for developers in an era of department store industry mergers and acquisitions, Duker said. Gone are the days when developers sweated over luring three to five anchors to newly built enclosed malls. Simon is building four new projects in America in the near future, and all are open-air formats. "Owners are trying to bring in tenants that have a broader draw to families that are now more educated about their shopping and are pressed for time," she said. For Simon, the journey on open-air formats began in the mid- to late 1990s. It opened its first lifestyle center in Bowie, Md., in 2002, and there has been no stopping since, analysts say. "They have more of these kinds of projects in the pipeline than any of their competitors, and their project delivery thus far has been very successful," said Matthew Ostrower, an analyst with Morgan Stanley and Co. Ostrower doesn't hold any Simon stocks, but his company has investment banking relationships with Simon. "These (lifestyle formats) seem to be a viable property type for Simon, and we have no argument against their strategy," Ostrower said. Simon came on board with the Noblesville project within the past year, said Tom Schneider, executive vice president of development with Simon. The company has been analyzing the market for a while. "Hamilton County is one of the fastest-growing counties in the country," Schneider said. "And a great trade area from which to draw." Noblesville city officials said they expect the project to give a new identity to the town. "We hope this will make us less of a bedroom community for Indianapolis," said Mayor John Ditslear. Call Star reporter Madhusmita Boraat (317) 444-6202. ___________________ About Hamilton Town Center Location: Northside of I-69's exit 10 interchange near Verizon Wireless Music Center Area: 97 acres Cost: More than $100 million Key components: Restaurants, movie theater, grocery store, sporting goods store, home goods store, residential dwellings, office space and other retail Jobs: 2,700 (estimated) Retail square footage: 904,791 Groundbreaking: Spring 2006 Project completion: Fall 2007 __________________ About Simon Property Group Founded in 1960 as Melvin Simon & Associates by brothers Melvin and Herbert Simon. Became Simon Property Group in 1993. Ticker: SPG Headquarters: Indianapolis Holdings: Currently owns or has an interest in 297 properties in the United States and Puerto Rico; has interests in 51 properties in Europe; four outlet centers in Japan and one in Mexico; one shopping center in Canada. Executives: David Simon, chief executive officer; Richard Sokolov, president and chief operating officer; Melvin and Herbert Simon, co-chairmen 2004 consolidated revenue: $2.6 billion Employees: 4,610 Gershman Brown & Associates Commercial real estate developer with offices in Indianapolis, Chicago and Providence, R.I. Founded in 1993. Headquarters: 600 E. 96th St., Indianapolis Executives: Jerry Gershman, co-founder and chairman; Adrian Brown, co-founder and president Indiana development projects: Include CVS pharmacies, Home Depot in Fort Wayne, The Overlook in Indianapolis, Lloyd Crossing Power Center in Evansville. Now involved in the Anson Project in Boone County. Sources: Simon Property Group, Gershman Brown & Associates Largest metro-area retail centers Castleton Square Mall Square feet: 1,469,177 Year opened: 1972 Retail anchors: Dick's Sporting Goods, L.S. Ayres, Macy's, Sears, Von Maur, J.C. Penney Greenwood Park Mall Square feet: 1,324,665 Year opened: 1978 Retail anchors: J.C. Penney, Macy's, L.S. Ayres, Sears, Von Maur, Dick's Sporting Goods Lafayette Square Square feet: 1,207,381 Year opened: 1968 Retail anchors: L.S. Ayres, Sears, Burlington Coat Factory Washington Square Square feet: 923,571 Year opened: 1974 Retail anchors: L.S. Ayres, Dick's Sporting Goods, Target, Sears, Burlington Coat Factory Circle Centre Square feet: 791,037 Year opened: 1995 Retail anchors: Nordstrom, Parisian Plainfield Commons Square feet: 738,000 Year opened: 1995 Retail anchors: Old Navy, Pier One Imports, Kohl's Super Target, Wal-Mart Glendale Mall Square feet: 724,026 Year opened: 1958 Retail anchors: L.S. Ayres, Glendale Library, Kerasotes Theatre, Lowe's, Staples, Old Navy The Fashion Mall Square feet: 648,000 Year opened: 1997 Retail anchors: Parisian, Saks Fifth Avenue Centre East Square feet: 641,000 Year opened: 1995 Retail anchors: Wal-Mart, Sam's Club, Marsh Supermarket, Hobby Lobby Clay Terrace Square feet:586,000 Year opened: 2004 Retail anchors: dick's Sporting Goods, Wild Oats, DSW Shoe Warehouse, Circuit City Sources: International Council of Shopping Centers, Simon Property Group, Kite Realty Group .